EnBW sells interests in Hungary

Source Company Press Release
Company EnBW Energie Baden-Württemberg AG, E.ON
Tags Country: Hungary, M&A: Corporate Deal, Deals, Segment: Power
Date October 04, 2019

Disposals mark EnBW’s exit from the Hungarian market. Transaction in line with 2020 Strategy divestment targets.

EnBW is selling its stakes in the two Hungarian electricity supply companies ELMÜ and EMASZ and consequently withdrawing from the Hungarian market. The buyer is a subsidiary of E.ON, which had already indirectly obtained majority shareholdings in ELMÜ and EMASZ in the recently completed acquisition of Innogy.

“The two minority shareholdings have done very well since our entry into the Hungarian market around 25 years ago. But the new ownership structure means that their strategic importance for us has declined and we are now making use of the opportunity to withdraw from the market on financially attractive terms,” explained CFO Thomas Kusterer. “The disposal is also in line with the divestment targets under our 2020 Strategy and the related portfolio transformation,” Kusterer added.

The sale of its approximately 27 percent interest in the two electricity providers ELMÜ and EMASZ brings EnBW’s involvement in Hungary to an end. EnBW already sold its stake in the Matra lignite-fired power plant to a Hungarian investor in 2018.

Budapesti Elektromos Művek Nyrt. (ELMÜ) and Észak-magyarországi Áramszolgáltató Nyrt. (EMASZ) are publicly listed electricity providers headquartered in Budapest. ELMÜ and EMASZ have a workforce of around 2,700 and serve some 2.1 million customers in Budapest and north-eastern Hungary, which represents about 30 percent of the market. Their main business areas are the sale and distribution of electricity and gas and operation of their electricity grids.

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